Aviation Insurance in India 航空保险在印度

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N. G. Acharya & D. K. Marathe College, Chembur

INTRODUCTION

INTRODUCTION TO SERVICE SECTOR

INSURANCE INDUSTRYAIRLINE INDUSRTY

INDIAN AIRLINE INDUSTRYAVIATION INSURANCEAVIATON INSURANCE IN INDIA


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The service sector accounts for more than half of India's GDP: 51.16

percent in 1998-99. This sector has gained at the expense of both the agricultural

and industrial sectors through the 1990s. The rise in the service sector's share in

GDP marks a structural shift in the Indian economy and takes it closer to the

fundamentals of a developed economy (in the developed economies, the industrial

and service sectors contribute a major share in GDP while agriculture accounts for

a relatively lower share).

The service sector's share has grown from 43.69 per cent in 1990-91 to 51.16

per cent in 1998-99. In contrast, the industrial sector's share in GDP has declined

from 25.38 per cent to 22.01 per cent in 1990-91 and 1998-99 respectively. The

agricultural sector's share has fallen from 30.93 per cent to 26.83 per cent in the

respective years.

Some economists caution that if the service sector bypasses the industrial

sector, economic growth can be distorted. They say that service sector growth must

be supported by proportionate growth of the industrial sector; otherwise the service

sector grown will not be sustainable

Within the services sector, the share of trade, hotels and restaurants increased

from 12.52 per cent in 1990-91 to 15.68 per cent in 1998-99. The share of

transport, storage and communications has grown from 5.26 per cent to 7.61 per

INTRODUCTION TO SERVICE SECTOR


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cent in the years under reference. The share of construction has remained nearly

the same during the period while that of financing, insurance, real estate and

business services has risen from 10.22 per cent to 11.44 per cent. The fact that the

service sector now accounts for more than half the GDP probably marks a

watershed in the evolution of the Indian economy.

Customer satisfaction predominates the success of an enterprise. In the

service industry where intangibles are marketed, the importance of customer

satisfaction is all the more significant. Service is said to be the sharpest edge of

marketing strategy. Sales and service are the two important wings of service

industry like LIC, ITI and the post office. If one of the wings turns weak the

organization cannot rise because the weaker wing will hamper its flight. Hence the

emphasis should not be concentrated only on the sales but on service aspects too.

Besides a supportive role in promoting sales effort, servicing influences the

institutional image. Prompt and effective service boosts the morale of the sales

force to present a bold form and hold their prospects. Service encompasses the

service rendered to clients before, during, and after sales. A few examples of

services are the Hotel industry, Airline industry, Insurance industry, Transportation

industry, etc.


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INSURANCE INDUSTRY

Insurance may be described as a social device to reduce or eliminate

risk of loss to life and property. Under the plan of insurance, a large number of

people associate themselves by sharing risks attached to individuals. The risks,

which can be insured against, include fire, the perils of sea, death and accidents

and burglary. Any risk contingent upon these, may be insured against at a premium

commensurate with the risk involved. Thus collective bearing of risk is insurance.

Insurance in the modern form originated in the Mediterranean during 13/14th

century. The earliest references to insurance have been found in Babylonia, the

Greeks and the Romans. The use of insurance appeared in the account of North

Italian merchant banks who then dominated the international trade in Europe at

that time. Marine insurance is the oldest form of insurance followed by lifeinsurance and fire insurance. The patterns that have been used in England followed

in other countries also in these kinds of insurance. The origin and growth of

Marine Insurance, life Insurance, Fire Insurance and miscellaneous insurance.


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AIRLINE INDUSTRY

In Airline Industry Aviation Insurance is a type of miscellaneous

insurance, concentrating on each and every aspect of aviation insurance and how it

has affected the service sector in recent times. Aviation is the most expensive

industry means of transport today. This sector gained importance and created

awareness after the 9/11 attack on the twin towers of America. After this attack lot

of changes took place in the aviation sector and also lot of amendments were made

by the law to regulate the aviation insurance contracts. So let us see what these

changes are and how aviation insurance forms one of the important parts of any

countrys insurance sector.


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INDIAN AIRLINE INDUSTRY

The Indian aviation industry is one of the fastest growing aviation

industries in the world. The government's open sky policy has led to many

overseas players entering the market and the industry has been growing both in

terms of players and number of aircrafts. Today, private airlines account for around

75 per cent share of the domestic aviation market.

India is the 9th largest aviation market in the world. According to the Ministry of

Civil Aviation, around 29.8 million passengers traveled to/from India during 2008,

an increase of 30 per cent on previous year. It is predicted that international

passengers will grow upto 50 million by 2015. Further, due to enhanced

opportunities and international connectivity, 69 foreign airlines from 49 countries

are flying into India.

Growth

The Indian Civil Aviation market grew at a compound annual growth rate (CAGR)

of 18 per cent, and was worth US$ 5.6 billion in 2008. Airlines recorded a double-

digit growth in air traffic in August 2009, according to data released by the

industry regulator Directorate General of Civil Aviation (DGCA).

Domestic airlines flew 3.67 million passengers in August 2009, as against 2.92

million in the corresponding period last yearan increase of 26 per cent.

The Centre for Asia Pacific Aviation (CAPA) forecasted that domestic traffic will

increase by 25 per cent to 30 per cent till 2010 and international traffic growth by

15 per cent, taking the total market to more than 100 million passengers by 2010.


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By 2020, Indian airports are expected to handle more than 100 million passengers

including 60 million domestic passengers and around 3.4 million tons of cargo per

annum.

Moreover, significant measures to propel growth in the civil aviation sector are on

the anvil. The government plans to invest US$ 9 billion to modernize existing

airports by 2010. The government is also planning to develop around 300 unused

airstrips.

India ranks fourth after US, China and Japan in terms of domestic passengers

volume. The number of domestic flights grew by 69 per cent from 2005 to 2008.

The domestic aviation sector is expected to grow at a rate of 9-10 per cent to reach

a level of 150-180 million passengers by 2020.

The industry witnessed an annual growth of 12.8 per cent during the last 5 years in

the international cargo handled at all Indian airports. The airports handled a total of

1020.9 thousand metric tons of international cargo in 2006-07.

Further, there has been an increase in tourist charter flights to India in 2008 with

around 686 flights bringing 150,000 tourists. Also, there has been an increase in

non-scheduled operator permits99 in 2008 as against 66 in 2007.

Low cost services

Major full-service carriers have converted around half their capacity into low-cost

services, which has resulted in bringing down the average fares of airlines as a

whole by about 30 per cent and thereby increasing demand from the domestic

passenger market.


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Kingfisher Airlines and Jet Airways have converted around half their capacity into

low-cost services. While, government carrier Air India plans to launch a low-cost

model in the domestic skies. It already has a low-cost airline called Air India

Express which operates on international routes.

Jet Airways has also increased the number of low-cost seats in the system by

around 50 per cent.

Low cost carriers (LCCs) such as Indigo and SpiceJet have increased the total

number of seats by 40 per cent and 53 per cent, respectively, in the past year.


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Aviation Insurance was first introduced in the early years of the 20th

Century. The first aviation insurance policy was written by Lloyd's of London in

1911. The company stopped writing aviation policies in 1912 after bad weather

and the resulting crashes at an air meet caused losses on many of those first

policies. It is believed that the first aviation polices were underwritten by the

marine insuranceUnderwritingcommunity.

In 1929 the Warsaw convention was signed. The convention was an

agreement to establish terms, conditions and limitations of liability for carriage by

air, this was the first recognition of the airline industry as we know it today.

By 1933 realizing that there should be a specialist industry sector the

International Union of Marine Insurance (IUMI) set up an aviation committee and

by 1934 eight European aviation insurance companies and pools were formally

established and the International Union of Aviation Insurers (IUAI) was born.

The London insurance market is still the largest single centre for

aviation insurance. The market is made up of the traditional Lloyds of London

syndicates and numerous other traditional insurance markets. Throughout the rest

of the world there are national markets established in various countries, this is

VI TION INSUR NCE
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dependent on the aviation activity within each country, the US has a large

percentage of the world's general aviation fleet and has a large established market.

No single insurer has the resources to retain a risk the size of a major

airline, or even a substantial proportion of such a risk. The Catastrophic nature of

aviation insurance can be measured in the number of losses that have cost insurers

hundreds of millions of dollars (Aviation accidents and incidents). Most airlines

arrange "fleet policies" to cover all aircraft they own or operate.

AVIATION INSURANCE IN INDIA

Aviation Industry in India is one of the fastest growing aviation

industries in the world. With the liberalization of the Indian aviation sector,

aviation industry in India has undergone a rapid transformation. From being

primarily a government-owned industry, the Indian aviation industry is now

dominated by privately owned full service airlines and low cost carriers. Private

airlines account for around 75% share of the domestic aviation market. Earlier air

travel was a privilege only a few could afford, but today air travel has become

much cheaper and can be afforded by a large number of people.

The origin of Indian civil aviation industry can be traced back to

1912, when the first air flight between Karachi and Delhi was started by the Indian

State Air Services in collaboration with the UK based Imperial Airways. It was anextension of London-Karachi flight of the Imperial Airways. In 1932, JRD Tata

founded Tata Airline, the first Indian airline. At the time of independence, nine air

transport companies were carrying both air cargo and passengers. These were Tata

Airlines, Indian National Airways, Air service of India, Deccan Airways, Ambica
http://en.wikipedia.org/wiki/Aviation_accidents_and_incidentshttp://en.wikipedia.org/wiki/Aviation_accidents_and_incidents


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Airways, Bharat Airways, Orient Airways and Mistry Airways. After partition

Orient Airways shifted to Pakistan

in early 1948, Government of India established a joint sector company, Air

India International Ltd in collaboration with Air India (earlier Tata Airline) with a

capital of Rs 2 crore and a fleet of three Lockheed constellation aircraft. The

inaugural flight of Air India International Ltd took off on June 8, 1948 on the

Mumbai-London air route. The Government nationalized nine airline companies

vide the Air Corporations Act, 1953. Accordingly it established the Indian Airlines

Corporation (IAC) to cater to domestic air travel passengers and Air India

International (AI) for international air travel passengers. The assets of the existingairline companies were transferred to these two corporations. This Act ensured that

IAC and AI had a monopoly over the Indian skies. A third government-owned

airline, Vayudoot, which provided feeder services between smaller cities, was

merged with IAC in 1994. These government-owned airlines dominated Indian

aviation industry till the mid-1990s.

In April 1990, the Government adopted open-sky policy and allowed air taxi-

operators to operate flights from any airport, both on a charter and a non charter

basis and to decide their own flight schedules, cargo and passenger fares. In 1994,

the Indian Government, as part of its open sky policy, ended the monopoly of IA

and AI in the air transport services by repealing the Air Corporations Act of 1953

and replacing it with the Air Corporations (Transfer of Undertaking and Repeal)

Act, 1994. Private operators were allowed to provide air transport services. Foreign

direct investment (FDI) of up to 49 percent equity stake and NRI (Non Resident

Indian) investment of up to 100 percent equity stake were permitted through the

automatic FDI route in the domestic air transport services sector.


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THE RISK

THE RISK

EXCLUSION

GENERAL LIABILITIES


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THE RISKS

Hull "All Risks"

The hull "All Risks" policy will usually refer to something like "all risks

of physical loss or damage to the aircraft from any cause except as hereinafter

excluded". Airline hull "All Risks" policies are subject to a standard level of

deductible (that is an uninsured amount borne by the Insured) applicable in the

event of partial (non-total) loss. Currently, this deductible can range from $50,000

in respect of a Twin Otter to $1,000,000 in respect of a wide-bodied jet aircraft,

such as a Boeing 747. Deductibles too can be reduced by means of a separate

"Deductible Insurance" policy. The Deductible Insurance Policy is affected to

reduce the large "All Risks" policy deductibles to a more manageable level. For

example the US$1,000,000 applicable to a Boeing 747 can be reduced to say

US$100,000.

The term "all risks" can be misleading. "All risks of physical loss or

damage" does not include loss of use, delay, or consequential loss. "Grounding" is

a good example of consequential loss. Some years ago when there had been a

couple of accidents involving DC10 Aircraft, the Civil Aviation Authorities

throughout the world imposed a "grounding order" on that type of aircraft.

That order in effect said until certain things had been established and

checked out those aircraft could not fly. The operators of those aircraft were unableto fly them and as a consequence of that they "lost" the use of them. But the

aircraft were not "lost" - it was known precisely where they were but they could

not be used to carry passengers. Such an eventuality would not be covered by an


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"all risks" policy because in such circumstances there is no PHYSICAL loss or

damage.

What the policy will cover is the reinstatement of the aircraft to its "pre-

loss" condition, if repairable damage is involved, or some other form of settlement

in the event that more substantial damage is sustained. Exactly what form of

settlement will depend on the policy conditions.

Today, the vast majority of airline hull "all risks" policies are arranged on

an "Agreed Value Basis". This provides that the Insurers agree with the Insured,

for the policy period, the value of the aircraft and as such, in the event of total loss,

this Agreed Value is payable in full. Under an Agreed Value policy the

replacement option is deleted.


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EXCLUSIONS

Wear, tear and gradual deterioration - in common with most non-marine

policies these perils are thought to be a trading expense and not a peril to be

insured.

Ingestion damage - caused by stones, grit, dust, sand, ice, etc., which result

in progressive engine deterioration is also regarded as "wear and tear and

gradual deterioration", and as such is excluded. Ingestion damage caused by

a single recorded incident (such as ingestion of a flock of birds) where the

engine or engines concerned have to shut down is not regarded as wear and

tear and is covered subject to the applicable policy deductible.

Mechanical Breakdown - likewise is thought by aviation insurers to be an

operating expense, but subsequent damage outside the unit concerned is

usually covered. However, it is possible to obtain insurance coverage against

mechanical breakdown of engines by way of a separate policy. This

coverage has a high degree of exposure and as a result is relatively

expensive. The majority of airlines do not purchase it probably viewing such

exposure as a part of the "engineering" budget.

Spares

First of all we must identify what we mean by a "spare" or perhaps -

"when is a spare not a spare" to which a simple answer is "when it is attached".

Under most "Hull" policies the word "Aircraft" means Hulls, machinery,

instruments and the entire equipment of the aircraft (including parts removed but

not replaced). Once a part is replaced it is no longer, from an insurance viewpoint,


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part of the aircraft. Conversely once a spare part is attached to an aircraft as a part

of that aircraft (not in the hold as cargo or on the wing as an extra pod) it is no

longer a "spare".

If the equipment is insured on the hull "All Risks" policy the automatic

transfer of coverage from "aircraft" to "spare" and vice versa is automatically

accomplished.

Having established when a spare is a spare how is it insured as such?

Usually in one of two ways. Either under a "spares" section of a hull policy or by a

separate Spares Policy. In either case the scope of coverage will probably be

similar. All Risks whilst on the Ground and in Transit for a limit of [so much] any

one item or sending or any one location. War Risks can also be covered (in respect

of transits), Strikes, Riots, Civil Commotions can be covered in accordance with

standard market clauses. Spares coverage is usually subject to a small deductible

except, however, in respect of ground running of spare engines when the

appropriate Ingestion deductible will be applied. Spares are normally covered on

an agreed value basis - usually their replacement cost (be it new or reconditioned -

as is required).

Spares installed on any aircraft are not covered by the Spares Insurance. They

become, from an insurance standpoint, a part of the aircraft upon which they are

installed and a part of the Agreed Value for which it is insured. This becomes

particularly important if the parts are loaned to another airline.


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Hull War Risks

The hull "All Risks" policy will contain the exclusion of "War and Allied Perils".

Generally speaking, throughout the aviation insurance world, "War and Allied

Perils" have a defined meaning. In the London Aviation Insurance Market the

standard exclusion is called the War, Hi-jacking and Other Perils Exclusion Clause

(currently known by its reference - AVN48B for short) this lists and defines these

so-called war and allied perils.

War Defi nition:

War - this includes civil war and war where there is no formal

declaration.

The detonation of a weapon of war employing nuclear fission or fusion.

Strikes, riots, civil commotions and labour disturbances.

Political or terrorist acts.

Malicious or sabotage acts.

Confiscation, nationalization, requisition and the like by any

government.

Hi-jacking or any unlawful seizure or exercise of control of the aircraft

or crew in flight.

The exclusion also applies to any loss or damage occurring whilst the aircraft is

outside the control of the operator by reason of any of these "war" perils.

The majority of the excluded "War and Allied Perils", other than the detonation of

a nuclear weapon and a war between the Great Powers (the aviation insurance

world identifies these as the U.S.A., the Russian Federation, China, France and the

UK), can normally be covered by way of a separate "War and Allied Perils" policy.


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Aircraft deductibles are not normally applied in respect of losses arising out of

"War and Allied Perils".

Other exclusions insurers will usually apply are, as follows:-

Confiscation etc. by the "state" of registration (this exclusion can often be

deleted in respect of financial interests - albeit, in some instances at an

additional premium charge)

Any debt, failure to provide bond or security or any other financial cause

under court order or otherwise;

The repossession or attempted repossession of the Aircraft either by any title

holder or arising out of any contractual agreement to which any Insured

protected under the policy may be party;

Delay and loss of use. (Although there is often an extension to the policy for

a limited amount for extra expenses necessarily incurred following

confiscation or hijacking).

The aircraft hull "War and Allied Perils" policy will cover the aircraft on an

"Agreed Value" basis against physical loss or damage to the aircraft occasioned by

any of these perils. This statement is made carefully and deliberately in order to

highlight the essential difference from a "Political Risks" Insurance.


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Liability Insurance

Liability can be divided basically into two categories:

Liability in respect of Passengers, Baggage, Cargo and Mail carried on the

aircraft. These liabilities result from the operations the airline is set up to

perform and are normally the subject of a contract of carriage like a ticket or

airway bill, which provides some possibility of limiting the airline's liability.

Aircraft Third Party Liability - the liability for damage done to property or

people outside the aircraft itself.

Every airline will arrange liability insurance for these two categories, normally in a

single liability policy. In many countries there are requirements laid down

imposing minimum limits of liability that are a prerequisite to obtaining an

operator's licence. Elsewhere limits are specified for an aircraft to be allowed to

land. The size of limit required is often related to the size of the aircraft concerned

(and its potential for causing damage). A small aircraft operating only in remote

regions and using small airstrips incurs considerably less potential exposure than

an aircraft flying into and out of major airports.


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GENERAL LIABILITIES

The other category of liability covers premises, hangarkeepers and

products liability and is called "Airline General Third Party" - being the liabilityfor damage done to property or people arising from other than the use of aircraft.

Many airlines cover their "Airline General Third Party Liability" within their main

liability program.

It is called "Airline General Third Party Liability" these days since

the insurers took steps specifically to exclude all non aviation activities (for

example hotel ownership or management) from "Aviation" Policies a few years

ago. Basically for a risk to be considered as "Airline General Third Party Liability"

it must arise from what are described as "aviation occurrences" being those

involving aircraft or parts relating thereto, or arising at airport locations or arising

at other locations in connection with the airline's business or transporting

passengers/cargo or arising out of the sale of goods or services to others involved

in the air transport industry.This means that there is a definitive language detailing

what is considered as "aviation exposure" such that any other (non-aviation)

exposure is excluded.

Most policies are placed on a Combined Single Limit Basis. This

means Bodily Injury and Property Damage combined. In the past, personal injury

was included but now this has been separated. It should be mentioned, however,

that these days the term "bodily injury", in addition to bodily injury, sickness and

death resulting at any time, will include shock and mental anguish. "Personal

Injury" on the other hand is defined as "offences against the person", such as false

arrest, malicious prosecution, invasion, libel or slander and the like.


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In respect of Personal Injury the full policy limit, whatever that may be, is not

available and is usually limited to US$25,000,000 any one offence and in the

annual aggregate.

What are excluded from liability insurance are such things as:-

Damage to the Insured's own property. (It is after all a third party liability

policy).

War and Allied Risks although these are "written back" by a device called

"The Extended Coverage Endorsement - AVN 52".

Radioactive Contamination.

Noise and Pollution - unless caused by or resulting in a crash, fire, explosion

or recorded "in flight" emergency.

Both the Aircraft and General Liability policies usually includes the "war and

allied perils" exposure by way of a "write back" and will probably provide for such

things as search and rescue expenses, first aid and other humanitarian expenses and

also defence costs.

Hull Total Loss Only Cover

This is similar to Hull All Risks cover given above but will respond only

to total losses of aircraft, whether actual, constructive or arranged. This is

particularly given for old aircraft since the old aircraft are heavily depreciated and

insured for low sums and premium on such low sums would result in low

premium, which would be inadequate for the partial losses. The ratio of partial

losses to total losses in such old aircraft is distorted.


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BUYING AVIATION INSURANCE

CONTRACT

SELECTION OF A BROKER

WHAT DOES YOUR BROKER DO FOR YOU? WHAT TO GIVE YOUR INSURANCE BROKER

RENEWING AVIATION INSURANCE


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BUYING AVIATION INSURANCE CONTRACT

As with many specialized service or commodity purchasing, the use of an

experienced intermediary or middleman is usually prudent for the transaction

process. Although this middleman may not be required in all facets or industries

for successful purchases, in the Aviation Insurance Industry, with only one

exception, it is required. The middleman we are discussing is often referred to as

a Broker; it is quite frankly the only way to accomplish this need. All the Aviation

Insurance companies or groups require the use of a Broker to secure insurance on

behalf of the consumer. So what is this Aviation Insurance Broker we need to

utilize and access most of the companies providing insurance?

Well, the term broker refers to an independent insurance person who is licensed

by the State to represent and work for the consumer in the insurance purchasing

and service process. Unlike an insurance agent who represents an insurance

company and represents that insurance companys interest, a broker is

independent of the insurance company and represents the needs and interest of

the client. This independence allows the broker the freedom and opportunity to

deal with multiple aviation insurance companies and is considered to be working

the client. The brokers compensation is paid by a percentage of premiums, which

comes from the consumer. This commission structure keeps the brokers attention

to represent the best interest of the client/consumer and places a responsibility

that the broker provides a continuous service and handling of the insurance needs

or requirements.


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SELECTION OF A BROKER:

The selection process of a broker should be more involving for the consumer,

than which insurance company to buy the coverage from. That is a process

consumer and the broker decide upon. The selection of a broker should takeseveral considerations, such as the experience the broker has in the consumers

segment of aviation or operation, the infra-structure or team support behind the

broker to achieve the demands of technical service and document handling, the

market relationship and credibility with underwriters (the insurance company),

and the overall reputation in the aviation community.

Just as an extensive interview process in conducted to select an employee for acompany, so should the hiring process involve searching for, and selecting the

aviation insurance broker. This can be conducted by an interview process where

the broker sells themselves and the organization they represent as well as a check

upon their credentials with a client list of references. Once this process is

complete and the consumer feels comfortable with the selection, the long-term

relationship the consumer develops with his broker will provide the consumer

years of professional service.

If, however, the client believes his choice was not good or the broker service does

not meet his expectations for a variety of reasons, the client can always change

the broker as in the original selection process by writing a "Broker of Record"

letter which is provided to the current insurance company. This letter will replace

or fire the current broker with the clients new selection, which is based on his

criteria and not that of any insurance company. Whatever the process by which

the client select or remove the broker representation is controlled by the client.

WHAT DOES YOUR BROKER DO FOR YOU?


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Understanding the brokers job should help the client during the selection

process. The broker will gather the "underwriting" information on the clients

"risk", the aircraft or operation, and submit this information to the insurance

company. This gathering of information can be as simple as a one-page

application for small risk such as private aircraft usage or as complex as booklets

of information for large commercial operations. In any event it is important that

the broker knows what information to secure, how to present it and understands

completely its context. Thats because the next important part of the brokers

responsibility to the client is to negotiate the best combination of coverage and

price for clients risk. This can only be achieved with a brokers level of

understanding of clients risk, their experience in this area, and for larger riskhaving a support mechanism the underwriter can relate to. It is in this process the

brokers skill is utilized to create the competition between insurance companies to

obtain best industry prices at the current time.

Once the broker has negotiated the clients insurance program, they will continue

to advise the client from the purchasing process through the coverage issues that

may arise during the policy period, usually one year. This expertise in service candeal with changes in your policy during its term to the most important reason the

client bought the policy in the first place and that is handling a claim should one

occur during the policy term. This service process from the client broker may not

involve just one person, but multiples of support personnel depending on the size

and complexity of your risk. As stated earlier, this is why the selection process is

important and should involve understanding the structure of the entire brokerage

firm for which to represent the client.

WHAT TO GIVE YOUR INSURANCE BROKER:

AIRCRAFT INFORMATION Report year, make, model and acquisition value,


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plus tail and serial numbers and information about

passenger and crew seating.

BASE INFORMATION Give details about home airport, hanger space and

ground handling.

CONTRACTS Supply drafts of usage, ownership and storage

agreements.

LIABILITY LIMITS &

PROVISIONS

Report average passenger load and profile and

review insurance provisions, deductibles and war

risk perils.

MAINTENANCE DETAILS Explain whether youll outsource it, use an in-

house mechanic or do a little of both.

MISSION INFORMATION Detailed purpose of use, territory of operations and

anticipated annual hours of operations.

PILOT HISTORY FORMS Submit signed forms (which are obtainable from

your broker) for all pilots.

RENEWING AVIATION INSURANCE

If you're like most owners and pilots, you simply renew your aviation insurance

policy every year. If it was good enough last year it will be good enough this year.


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Then you probably don't give it another thought until next year. And this pattern

often repeats itself for many years.

There are two very big problems with this scenario. First, things change. Youraircraft, where you fly, who you fly with, how much you flymany of these

things can change over the years, and they should be reflected in your policy.

Second, and even more serious, it is quite possible that your policy wasn't the

right one for you to begin with! In that situation, you are simply renewing your

mistake year after year. In either case, your aviation insurance policy deserves a

little bit of your time once a year. Here are the five things you should do to make

sure you are adequately protected.

1.Choose your broker

When you insure your home or your business, a broker can choose from dozens

and dozens of insurance companies. As a result, shopping around with a few

brokers can make sense. Chances are, they may not even approach the same

companies for your quote.

In the case of aviation insurance, however, there are only four or five companies in

Canada to choose from and even fewer that specialize in light aircraft. Obviously,

it doesn't matter how many brokers you go to, the odds are that they will be

approaching the very same companies on your behalf. This can actually be a

serious disadvantage for you, as some companies will simply refuse to quote in

these circumstances in order to avoid the feeding frenzy that can result when a

number of brokers vie for the same account.

So, as you can see, choosing your broker is the first step. But how do you choose?

And are there any alternatives to a broker?


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Let's look at alternatives first. The only alternatives to a broker are the direct

sellers and special programs. In these cases you are dealing with a salesperson

who can only offer you the one product they represent. As a result, these options

tend to be promoted on the basis of cheap ratesbut like bargains anywhere,

they do so by cutting coverage and often leaving you seriously underinsured. If

you really want to know what they can offer you, check them out. But before you

make your decision; be sure to talk to a broker who works for you and not any one

company.

So how do you choose the right broker? Start by finding an aviation specialist.

Although any general insurance broker can sell you aviation insurance, they

simply do not have the experience or familiarity with the field to be your best

choice. Even more importantly, they usually can't get you the best rates.

If the insured is an aviation specialist, he may deal with the companies and

underwriters every single day. He gets to know them personally and may place a

lot of business with them. Now compare that to the average general insurance

broker who maybe places one or two policies a year with that company. Who do

you think will get you the better results? Finally, make sure that you are

comfortable with the broker you choose.

2. Confirm the value of your aircraft

Neglecting to keep up with the market value of your aircraft is one of the most

common renewal mistakes. If you do this year after year, you could be in for a rude

awakening. Aircraft values have soared in recent years, with many doubling in


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price over the last decade.

Unlike home or auto insurance, aviation insurance is a stated value policy. That

means that the owner is responsible for declaring the value of the insured aircraft.If you undervalue your plane, you risk losing it after even a minor accident. As I

have explained many times in this column, the stated value is the maximum the

insurance company will pay out and they will keep the plane as salvage.

So whether you have simply neglected to increase the value on your policy at

renewal time or have tried to save a few bucks on the premium by insuring for alower amount you are taking a very big gamble. Make sure you resolve this issue

at your next renewal.

3. Review your liability

Make sure your policy doesn't have passenger or family member restrictions. This

is the most common way that companies offer bargain policies. It is also the

most common way owners lose everything they own when courts award large

injury settlements that are not covered by their bargain policy. I regularly see

people with limits of only $100,000 per person. You'd never consider such a low

amount for your home or auto insurance, so why allow it on your aviation policy?

With the high court settlements being awarded today, one to two million dollars

should be the least you consider.

4. Get the right coverage for your needs


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At every renewal, you should discuss your flying habits with your broker. Many

companies have territorial restrictions to the and some have restrictions for dirt or

grass landing strips. Make sure your policy covers the kind of flying you do.

If you have madeor are planning to makeany upgrades or changes to theconfiguration of your aircraft, you may need to make some adjustments to your

policy. Otherwise, you may find yourself out of luck in case of an accident.

5. Protect your interests

Finally, you should discuss any other unusual circumstances regarding your

aircraft. You may need to arrange for special coverage to protect your interests.

One common example I run into is an owner who has his aircraft on lease to a

flying school or commercial operator. If the lessee commits an illegal act or

omission, your aviation policy could be nullified. In these situations, you should

obtain Breach of Warranty coverage which will pay a lien holder's interest

despite the policy being otherwise invalidated.

Following these simple steps once a year at renewal time is an easy way to make

sure that your aviation insurance policy continues to protect you. So don't take the

easy way outdon't just say renew it as is for another year.

VI TION INSUR NCE PROVIDED BY V RIOUS

INSUR NCE COMPNYS


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KINGFISHER AIRLINES LTDHISTORY

STATISTICSFLEET

AVIATION INSURANCE OF KING FISHERAIRLINES


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Kingfisher irlines

Kingfisher Airlines Limitedis a majorIndian airline. Kingfisher

operates more than 400 flights a day and has a network of 80 destinations, with

regional and long-haul international services. Kingfisher Airlines, through one of

its holding companiesUnited Breweries Group,has a 50 percent stake inlow-cost

carrierKingfisher Red.

Kingfisher Airlines is one of six airlines in the world to have a five-star

rating fromSkytrax,along withAsian Airlines,Malaysia Airlines,Qatar Airways,

Singapore Airlines and Airways. In May 2009, Kingfisher Airlines carried more

than a million passengers, giving it the highest market share among airlines in

India. Kingfisher has its registered office in theUB Tower inBangalore and its

head office in the Kingfisher House inMumbai.
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/United_Breweries_Grouphttp://en.wikipedia.org/wiki/Low-cost_carrierhttp://en.wikipedia.org/wiki/Low-cost_carrierhttp://en.wikipedia.org/wiki/Kingfisher_Redhttp://en.wikipedia.org/wiki/Skytraxhttp://en.wikipedia.org/wiki/Asiana_Airlineshttp://en.wikipedia.org/wiki/Malaysia_Airlineshttp://en.wikipedia.org/wiki/Qatar_Airwayshttp://en.wikipedia.org/wiki/Singapore_Airlineshttp://en.wikipedia.org/wiki/UB_Towerhttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/UB_Towerhttp://en.wikipedia.org/wiki/Singapore_Airlineshttp://en.wikipedia.org/wiki/Qatar_Airwayshttp://en.wikipedia.org/wiki/Malaysia_Airlineshttp://en.wikipedia.org/wiki/Asiana_Airlineshttp://en.wikipedia.org/wiki/Skytraxhttp://en.wikipedia.org/wiki/Kingfisher_Redhttp://en.wikipedia.org/wiki/Low-cost_carrierhttp://en.wikipedia.org/wiki/Low-cost_carrierhttp://en.wikipedia.org/wiki/United_Breweries_Grouphttp://en.wikipedia.org/wiki/India


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History

Kingfisher Airlines registered office at theUB Group

Towers inBangalore,India The airline started operations on 9 May 2005,

following thedry lease of four newAirbus A320-200 aircraft. Its first flight was

fromMumbai toDelhi.At the launch of the airline, Dr. Malaya said that he is

"committed to achieving our ambition of making Kingfisher Airlines India's largest

private airline both in capacity and market share by 2010."

Kingfisher was the first Indian airline to havein-flight entertainment (IFE) systems

on every seat even on domestic flights. All passengers were given a "welcome kit"

consisting goodies such as a pen, facial tissue and headphones to use with the IFE

system. Initially, passengers were able to watch only recorded TV programming on

the IFE system, but later an alliance was formed withDish TV to provide live TV

in-flight.[8]And in a marked departure from tradition, Kingfisher Airlines decided

to have an on-screensafety demonstration using the IFE system.

On 14 July 2008, Kingfisher unveiled its first everWide-body aircraft,aAirbus

A330-200 (registered VT-VJL) at the 46thFarnborough Airshow held in July

2008. Kingfisher's first Airbus A330-200 was widely billed (according to the

airline's press release) as the best A330-200 ever built byAirbus

On 3 September 2008, Kingfisher started its international operations by connecting

Bangalore withLondon.On 15th September 2009 the London service was

withdrawn.
http://en.wikipedia.org/wiki/UB_Grouphttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Dry_leasehttp://en.wikipedia.org/wiki/Airbus_A320http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/In-flight_entertainmenthttp://en.wikipedia.org/wiki/Dish_TVhttp://en.wikipedia.org/wiki/Kingfisher_Airlines#cite_note-7http://en.wikipedia.org/wiki/Kingfisher_Airlines#cite_note-7http://en.wikipedia.org/wiki/Kingfisher_Airlines#cite_note-7http://en.wikipedia.org/wiki/Safety_videohttp://en.wikipedia.org/wiki/Wide-body_aircrafthttp://en.wikipedia.org/wiki/Airbus_A330-200http://en.wikipedia.org/wiki/Airbus_A330-200http://en.wikipedia.org/wiki/Farnborough_Airshowhttp://en.wikipedia.org/wiki/Airbushttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Airbushttp://en.wikipedia.org/wiki/Farnborough_Airshowhttp://en.wikipedia.org/wiki/Airbus_A330-200http://en.wikipedia.org/wiki/Airbus_A330-200http://en.wikipedia.org/wiki/Wide-body_aircrafthttp://en.wikipedia.org/wiki/Safety_videohttp://en.wikipedia.org/wiki/Kingfisher_Airlines#cite_note-7http://en.wikipedia.org/wiki/Dish_TVhttp://en.wikipedia.org/wiki/In-flight_entertainmenthttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Airbus_A320http://en.wikipedia.org/wiki/Dry_leasehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/UB_Group


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Statistics

Kingfisher Airlines Statistics

Year

Ended

Passengers

Carried

%

Change

Average Load factor

(%)

April 7 -

March 812,414,336 - -

April 8 -

March 910,850,359 12.6% 60%

Destinations

Kingfisher Airlines serves over 60 domestic destinations and 7international destinations in 7 countries acrossAsia andEurope.

Fleet

Airbus A320-200 ATR 72-500 Airbus A330-200
http://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Airbus_A320-200http://en.wikipedia.org/wiki/ATR_72-500http://en.wikipedia.org/wiki/Airbus_A330-200http://en.wikipedia.org/wiki/File:KFR-A330-VT-VJL.jpghttp://en.wikipedia.org/wiki/File:KFR-ATR72-VT-KAT.jpghttp://en.wikipedia.org/wiki/File:Kingfisher_Airlines.jpghttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/File:KFR-A330-VT-VJL.jpghttp://en.wikipedia.org/wiki/File:KFR-ATR72-VT-KAT.jpghttp://en.wikipedia.org/wiki/File:Kingfisher_Airlines.jpghttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/File:KFR-A330-VT-VJL.jpghttp://en.wikipedia.org/wiki/File:KFR-ATR72-VT-KAT.jpghttp://en.wikipedia.org/wiki/File:Kingfisher_Airlines.jpghttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/File:KFR-A330-VT-VJL.jpghttp://en.wikipedia.org/wiki/File:KFR-ATR72-VT-KAT.jpghttp://en.wikipedia.org/wiki/File:Kingfisher_Airlines.jpghttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/File:KFR-A330-VT-VJL.jpghttp://en.wikipedia.org/wiki/File:KFR-ATR72-VT-KAT.jpghttp://en.wikipedia.org/wiki/File:Kingfisher_Airlines.jpghttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/File:KFR-A330-VT-VJL.jpghttp://en.wikipedia.org/wiki/File:KFR-ATR72-VT-KAT.jpghttp://en.wikipedia.org/wiki/File:Kingfisher_Airlines.jpghttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/File:KFR-A330-VT-VJL.jpghttp://en.wikipedia.org/wiki/File:KFR-ATR72-VT-KAT.jpghttp://en.wikipedia.org/wiki/File:Kingfisher_Airlines.jpghttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Kingfisher_Airlineshttp://en.wikipedia.org/wiki/Airbus_A330-200http://en.wikipedia.org/wiki/ATR_72-500http://en.wikipedia.org/wiki/Airbus_A320-200http://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/Asia


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Kingfisher Airlines' fleet currently consists ofATR 42,ATR 72 andAirbus A320

family aircraft for domestic and short haul services andAirbus A330-200s for

international long-haul services. The average age of its fleet as of January 2009

was 2.3 years.

Kingfisher's fleet consists of the following aircraft as of 18 January 2010:

Kingfisher Airlines Fleet

Aircraft

In

Service Orders Options

Passengers

(Kingfisher

First/Kingfisher

Class)

Notes

ATR 42-

5002 48 (0/48)

Both aircraftdry

leased.

ATR 72-

500

17

838 20

66 (0/66)

72 (0/72)

15 new aircraft

to be dry leased

Airbus

A319-1003 144 (0/144) All 3 dry leased.

AirbusA320-200

10

3

10

67

134 (20/114)

174 (0/174)

180 (0/180)

9 dry leased.

Deliveriesthrough 2010-

2012.

Airbus 6 151 (32/119) 2 dry leased.
http://en.wikipedia.org/wiki/ATR_42http://en.wikipedia.org/wiki/ATR_72http://en.wikipedia.org/wiki/Airbus_A320_familyhttp://en.wikipedia.org/wiki/Airbus_A320_familyhttp://en.wikipedia.org/wiki/Airbus_A330-200http://en.wikipedia.org/wiki/Option_(aircraft_purchasing)http://en.wikipedia.org/wiki/ATR_42http://en.wikipedia.org/wiki/ATR_42http://en.wikipedia.org/wiki/Dry_leasehttp://en.wikipedia.org/wiki/Dry_leasehttp://en.wikipedia.org/wiki/ATR_72http://en.wikipedia.org/wiki/ATR_72http://en.wikipedia.org/wiki/Airbus_A319-100http://en.wikipedia.org/wiki/Airbus_A319-100http://en.wikipedia.org/wiki/Airbus_A320-200http://en.wikipedia.org/wiki/Airbus_A320-200http://en.wikipedia.org/wiki/Airbus_A321-200http://en.wikipedia.org/wiki/Airbus_A321-200http://en.wikipedia.org/wiki/Airbus_A320-200http://en.wikipedia.org/wiki/Airbus_A320-200http://en.wikipedia.org/wiki/Airbus_A319-100http://en.wikipedia.org/wiki/Airbus_A319-100http://en.wikipedia.org/wiki/ATR_72http://en.wikipedia.org/wiki/ATR_72http://en.wikipedia.org/wiki/Dry_leasehttp://en.wikipedia.org/wiki/Dry_leasehttp://en.wikipedia.org/wiki/ATR_42http://en.wikipedia.org/wiki/ATR_42http://en.wikipedia.org/wiki/Option_(aircraft_purchasing)http://en.wikipedia.org/wiki/Airbus_A330-200http://en.wikipedia.org/wiki/Airbus_A320_familyhttp://en.wikipedia.org/wiki/Airbus_A320_familyhttp://en.wikipedia.org/wiki/ATR_72http://en.wikipedia.org/wiki/ATR_42


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A321-200 2 199 (0/199)

Airbus

A330-2005 15 217 (30/187)

Deliveries

through 2010-

2012.

Airbus

A350-800 5 TBD

Deliveries

starting 2014.

Airbus

A380-800

5 5 TBDDeliveries

starting 2014.

Total 66 130 25

Kingfisher Airlines has a commitment for 35Airbus A320 family aircraft and 15

Airbus A350-800s which was announced at the2007 Paris Air Show.[12]

Services

This article is written likean advertisement.Please helprewrite this article from

aneutral point of view.For blatantadvertising that would require a fundamental

rewrite to become encyclopedic, use {{db-spam}} to mark forspeedy deletion.
http://en.wikipedia.org/wiki/Airbus_A321-200http://en.wikipedia.org/wiki/Airbus_A330-200http://en.wikipedia.org/wiki/Airbus_A330-200http://en.wikipedia.org/wiki/Airbus_A350-800http://en.wikipedia.org/wiki/Airbus_A350-800http://en.wikipedia.org/wiki/Airbus_A380-800http://en.wikipedia.org/wiki/Airbus_A380-800http://en.wikipedia.org/wiki/Airbus_A320_familyhttp://en.wikipedia.org/wiki/Airbus_A350-800http://en.wikipedia.org/wiki/Paris_Airshow#2007_Paris_Air_Showhttp://en.wikipedia.org/wiki/Kingfisher_Airlines#cite_note-11http://en.wikipedia.org/wiki/Kingfisher_Airlines#cite_note-11http://en.wikipedia.org/wiki/Wikipedia:NOT#SOAPBOXhttp://en.wikipedia.org/wiki/Wikipedia:NOT#SOAPBOXhttp://en.wikipedia.org/w/index.php?title=Kingfisher_Airlines&action=edithttp://en.wikipedia.org/wiki/Wikipedia:Neutral_point_of_viewhttp://en.wikipedia.org/wiki/Template:Db-spamhttp://en.wikipedia.org/wiki/Wikipedia:CSD#G11http://en.wikipedia.org/wiki/Wikipedia:CSD#G11http://en.wikipedia.org/wiki/Template:Db-spamhttp://en.wikipedia.org/wiki/Wikipedia:Neutral_point_of_viewhttp://en.wikipedia.org/w/index.php?title=Kingfisher_Airlines&action=edithttp://en.wikipedia.org/wiki/Wikipedia:NOT#SOAPBOXhttp://en.wikipedia.org/wiki/Kingfisher_Airlines#cite_note-11http://en.wikipedia.org/wiki/Paris_Airshow#2007_Paris_Air_Showhttp://en.wikipedia.org/wiki/Airbus_A350-800http://en.wikipedia.org/wiki/Airbus_A320_familyhttp://en.wikipedia.org/wiki/Airbus_A380-800http://en.wikipedia.org/wiki/Airbus_A380-800http://en.wikipedia.org/wiki/Airbus_A350-800http://en.wikipedia.org/wiki/Airbus_A350-800http://en.wikipedia.org/wiki/Airbus_A330-200http://en.wikipedia.org/wiki/Airbus_A330-200http://en.wikipedia.org/wiki/Airbus_A321-200


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Cabin classes

omestic

Kingfisher First

The domestic Kingfisher First seats have a 48 inch seat pitch and a 125 degree seat

recline. There are laptop and mobile phone chargers on every seat. Passengers can

avail of the latest international newspapers and magazines. There is also a steam

ironing service on board Kingfisher First cabins. Every seat is equipped with a

personalized IFE system withAVOD which offers a wide range ofHollywood and

Bollywood movies, English and Hindi TV programmes, 16 live TV channels and10 channels of Kingfisher Radio. Passengers also getBOSE noise cancellation

headphones.

Domestic Kingfisher First is only available on selectedAirbus A320 family

aircraft.

Kingfisher Class

The domestic Kingfisher Class has 32-34 inch seat pitch with footrests. Every seat

is equipped with personal IFE systems with AVOD on-board the Airbus A320

family aircraft. As in Kingfisher First, passengers can access the latest movies,

English and Hindi TV programmes, live TV and Kingfisher Radio.

On-board theATR 72-500s there are 17 colourLCD drop-down screens mounted

along with loudspeakers for audio in the cabin overhead, a head-end unit to handle

CDs and DVDs, and a crew control panel. The screens measure 12.7 cm by 9.3 cm,

weigh 0.2 kg each and are spaced every two or three seat rows along both sides of

the cabin.
http://en.wikipedia.org/wiki/AVODhttp://en.wikipedia.org/wiki/Hollywoodhttp://en.wikipedia.org/wiki/Bollywoodhttp://en.wikipedia.org/wiki/BOSEhttp://en.wikipedia.org/wiki/Airbus_A320_familyhttp://en.wikipedia.org/wiki/ATR_72-500http://en.wikipedia.org/wiki/Liquid_Crystal_Displayhttp://en.wikipedia.org/wiki/Liquid_Crystal_Displayhttp://en.wikipedia.org/wiki/ATR_72-500http://en.wikipedia.org/wiki/Airbus_A320_familyhttp://en.wikipedia.org/wiki/BOSEhttp://en.wikipedia.org/wiki/Bollywoodhttp://en.wikipedia.org/wiki/Hollywoodhttp://en.wikipedia.org/wiki/AVOD


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Economy class meal on-board a Kingfisher Airlines domestic flight

Kingfisher Red

After Kingfisher Airlines acquired Air Deccan, its name was changed to Simplifly

Deccan and subsequently toKingfisher Red.Kingfisher Red is Kingfisher Airline's

low-cost class on domestic routes. Passengers are given complimentary in-flight

meals and bottled water. A special edition ofCine Blitzmagazine is the only

reading material provided.

Kingfisher Airlines is the first airline in India to extend its King Club frequent

flyer program to its low-cost carrier as well. Passengers can earn King Miles evenwhen they fly Kingfisher Red, which they can redeem for free tickets to travel on

Kingfisher Airlines or partner airlines.

I nternational

Kingfisher First

The international Kingfisher First has full flat-bed seats with a 180 degree recline,

with a seat pitch of 78 inches, and a seat width of 20-24.54 inches.[13]Passengers

are givenMerino wool blankets, a Salvatore Ferragamo toiletry kit, a pyjama to

change into, five-course meals and alcoholic beverages. Also available are in-seat

massagers, chargers and USB connectors.

Every Kingfisher First seat has a 17 inch widescreenpersonal television with

AVOD touch screen controls and offers 357 hours of programming content spread

over 36 channels, includingHollywood andBollywood movies along with 16

channels of live TV, so passengers can watch their favorite TV programmes live.

There is also a collection of interactive games, a jukebox with customisable
http://en.wikipedia.org/wiki/Kingfisher_Redhttp://en.wikipedia.org/wiki/Cine_Blitzhttp://en.wikipedia.org/wiki/Cine_Blitzhttp://en.wikipedia.org/wiki/Cine_Blitzhttp://en.wikipedia.org/wiki/Kingfisher_Airlines#cite_note-12http://en.wikipedia.org/wiki/Kingfisher_Airlines#cite_note-12http://en.wikipedia.org/wiki/Kingfisher_Airlines#cite_note-12http://en.wikipedia.org/wiki/Merinohttp://en.wikipedia.org/wiki/Personal_televisionhttp://en.wikipedia.org/wiki/AVODhttp://en.wikipedia.org/wiki/Hollywoodhttp://en.wikipedia.org/wiki/Bollywoodhttp://en.wikipedia.org/wiki/Bollywoodhttp://en.wikipedia.org/wiki/Hollywoodhttp://en.wikipedia.org/wiki/AVODhttp://en.wikipedia.org/wiki/Personal_televisionhttp://en.wikipedia.org/wiki/Merinohttp://en.wikipedia.org/wiki/Kingfisher_Airlines#cite_note-12http://en.wikipedia.org/wiki/Cine_Blitzhttp://en.wikipedia.org/wiki/Kingfisher_Red


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playlists and Kingfisher Radio. Passengers are givenBOSE noise cancellation

headphones.

The service on board the Kingfisher First cabins includes a social area comprising

a full-fledged bar staffed with a bartender, a break-out seating area just nearby

fitted with two couches and bar stools, a full-fledged chef on board the aircraft and

any-time dining. A turn-down service includes the conversion of the seat into a

fully-flat bed and an air-hostess making the bed when the passenger is ready to

sleep.

Both Kingfisher First and Kingfisher classes featuremood lighting on theAirbus

A330-200 with light schemes corresponding to the time of day and flight position.

Kingfisher Class

The international Kingfisher Class seats offer a seat pitch of 34 inches, a seat width

of 18 inches and a seat recline of 25 degrees (6 inches). Passengers get full length

mod acrylicblankets, full size pillows and business class meals. There are in-seat

chargers and USB connectors.

Each Kingfisher Class seat has a 10.6 inch widescreen personal television with

AVOD touchscreen controls. The IFE is similar to that of the international

Kingfisher First class.

In-flight entertainment

Kingfisher's IFE system is the Thales TopSeries i3000/i4000 on-board the Airbus

A320 family aircraft, and Thales TopSeries i5000 on-board the Airbus A330

family aircraft provided by theFrance-basedThales Group.[14]
http://en.wikipedia.org/wiki/BOSEhttp://en.wikipedia.org/wiki/Mood_lightinghttp://en.wikipedia.org/wiki/Airbus_A330-200http://en.wikipedia.org/wiki/Airbus_A330-200http://en.wikipedia.org/wiki/Modacrylichttp://en.wikipedia.org/wiki/AVODhttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Thales_Grouphttp://en.wikipedia.org/wiki/Kingfisher_Airlines#cite_note-13http://en.wikipedia.org/wiki/Kingfisher_Airlines#cite_note-13http://en.wikipedia.org/wiki/Kingfisher_Airlines#cite_note-13http://en.wikipedia.org/wiki/Kingfisher_Airlines#cite_note-13http://en.wikipedia.org/wiki/Thales_Grouphttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/AVODhttp://en.wikipedia.org/wiki/Modacrylichttp://en.wikipedia.org/wiki/Airbus_A330-200http://en.wikipedia.org/wiki/Airbus_A330-200http://en.wikipedia.org/wiki/Mood_lightinghttp://en.wikipedia.org/wiki/BOSE


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Kingfisher Lounge

Kingfisher Lounges are offered toKingfisher Firstpassengers, along withKing

Club SilverandKing Club Goldmembers. Lounges are located in:

India

Bangalore

Chennai

Delhi

Hyderabad

Mumbai

King Club

TheFrequent-flyer program of Kingfisher Airlines is called theKing Clubin

which members earnKing Milesevery time they fly with Kingfisher or its partner

airlines, hotels, car rental, finance and lifestyle businesses. There are four levels in

the scheme: King Club Base, Red, Silver and Gold levels. Members can redeempoints for over a number of schemes. Gold and Silver members enjoy access to the

Kingfisher Lounge, priority check-in, excess baggage allowance, bonus miles, and

2 Kingfisher First upgrade vouchers for Gold membership.

Accidents and incidents

On 10 November 2009,Flight 4124,operated byATR 72-212A VT-KACskidded off the runway after landing atChhatrapati Shivaji International

Airport.The aircraft suffered substantial damage but all 46 passengers and

crew escaped unharmed.
http://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Frequent-flyer_programhttp://en.wikipedia.org/wiki/Kingfisher_Airlines_Flight_4124http://en.wikipedia.org/wiki/ATR_72http://en.wikipedia.org/wiki/Chhatrapati_Shivaji_International_Airporthttp://en.wikipedia.org/wiki/Chhatrapati_Shivaji_International_Airporthttp://en.wikipedia.org/wiki/Chhatrapati_Shivaji_International_Airporthttp://en.wikipedia.org/wiki/Chhatrapati_Shivaji_International_Airporthttp://en.wikipedia.org/wiki/ATR_72http://en.wikipedia.org/wiki/Kingfisher_Airlines_Flight_4124http://en.wikipedia.org/wiki/Frequent-flyer_programhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Bangalore


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AVIATION INSURANCE OF KINGFISHER AIRLINES

Two private sector general insurance companies, ICICI Lombard General

Insurance and Bajaj Allianz General Insurance, have bagged the insurance account

of Vijay Mallyas Kingfisher Airlines.

This is for the first time that the private sector general insurance companies have

made major inroads into the aviation sector, which has mainly been the forte of the

public sector insurers.

Both ICICI Lombard and Bajaj General Insurance will share the Kingfisher

Airlines account in a 75:25 ratio. After a beauty parade by the public sector and

private general insurance companies, the account was awarded to the two private

sector general insurance companies last week. ICICI Bank, one of the promoters of

ICICI Lombard, has also financed the aircraft acquisition plans of the Kingfisher

Airlines. The insurance deal will be executed the moment Kingfisher Airlines

acquires its fleet of aircraft. Kingfisher will be the first private carrier to be

launched with an all-new fleet. The airline has signed an agreement with Airbus

Industries of France for the purchase of three brand new Airbus A319 aircraft.

With this new purchase, Kingfisher Airlines, which will launch its operations on

May 7, has ordered a total of 33 brand new aircraft. Of these, a total of 13 aircraft

10 A320s and 3 A319sare on firm order, with options for buying a further

20 aircraft.


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INFORMATION

FLEET DETAIL

AVIATION INSURANCE OF AIR INDIA


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IR INDI

Air India is India's finest flying Ambassador. The urge to excel and the

enthusiasm, which characterised Air India's first flight, way back on October 15,

1932, is quintessential even today - thanks to Air Indians who have kept alive the

tradition of flying high.

The recent merger of Air India and Indian, the country's leader in the domesticsector, has helped the airline to emerge as a major force in the airline industry. The

re-branding exercise is currently underway and passengers are getting to see the

unified face of the new invigorated Air India. The merged entity, which presently

has a fleet of 148 aircraft offers passengers seamless travel across domestic and

international routes.

FLEET DETAILS


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Aircraft Type Owned Leased Total

B777 10 4 14

B747 3 3 6

A310 0 9 9

A319 9 5 14

A321 10 0 10

A320 30 18 48

A330 0 2 2

B737-800 13 7 20

ATR 0 7 7

CRJ 700 0 3 3

B737-800 5 0 5

B737 Freighters 6 0 6

A310 Freighters 4 0 4

TOTAL 90 58 148

Aircraft on order include eight B777-200LRs, fifteen B777-300ERs, twenty seven

B787 Dreamliners, eighteen B737-800s, nineteen A319s, twenty A321s and four

A320s. Of the 111 aircraft ordered, twenty three Boeing (five B777-200LRs, five

B777-300ERs, thirteen B737- 800s) and nineteen Airbus (ten A321s and nine

A319s) have been in the fleet so far.


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AVIATION INSURANCE OF AIR INDIA

(Primary data)

New India Assurance Company participated in the Aviation Insurance of Air

India way back in 1946. New India Assurance Company provides professional

aviation insurance advice and solutions to the needs of small aircraft operators as

well as scheduled airlines.

The aviation portfolio of New India Assurance Company encompasses following

type of covers.

Hull All Risk Insurance Policy:This policy is suitable for small aircraftoperators belonging to flying clubs, companies engaged in agricultural

spraying operations, aircrafts especially designed for VVIPs, business

executives and for those engaged in industrial aids. The policy scope

includes all physical loss or damage sustained by the insured aircraft

including total loss, disappearance. All losses are paid subject to deductibles.

Spares All Risk Insurance Policy:Covers loss or damage to spares, tools,

equipments and supplies owned by the insured or the property for which the

insured is responsible whilst on ground or in transit by land, sea, air

including in own aircraft or whilst on the premises of others for storage only.


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Hull/Spares War Risk Insurance:Indemnity is provided to the aircraft as

well as spares caused by war, invasion, acts of foreign enemies, hostilities,

civil war, rebellion, revolution, resurrection, martial law, strikes, riots, civil

commotion, malicious acts, sabotage.

Hull Deductible Insurance:Airlines at times have to bear a proportion of

loss due to application of a deductible under All Risk Policy, which may

impose considerable financial difficulty on the insured. Therefore the

operators insure part of their deductibles under this kind of insurance.

Aviation Personal Accident (crew member) Insurance: This cover is

designed to cover insured person against injury, disablement or death arising

as result of an accident that is generally granted on annual basis. The cover

operates while mounting or dismounting from and whilst traveling an

aircraft while the aircraft is being used within the geographical scope as per

its permitted usage. This cover can also be on 24 hours basis. The capitalsum insured varies according to the status of the insured or earning capacity

and fixed by the insurers.

Loss of License Insurance:Operating crews of the aircraft are required to

have valid license. License is liable to be suspended either temporarily or

permanently on medical grounds. Consequential financial loss is covered bythe loss of license policy. Cover provided is in respect of incapacity causing

permanent total disablement or temporary total disablement due to bodily

injury or illness.


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Besides the aforesaid general aviation policies New India Assurance Company also

provides various other tailor-made insurance as per specific requirements of the

insured.

Claims: In case of claims following are illustrative documents that are

generally called for from the insured.

Documents in connection with aircraft details

Documents in connection with flight details

Documents in connection with the accident

Certificate of airworthiness/registration

Crew details

Maintenance & engineering information

Operational manual passenger documentation in case of claims

CURRENT SCENARIO OF AVIATION INSURANCE


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The magic of multiplier effect is now working for the aviation ancillary industry.

Reaping the benefits of the aviation boom is not only maintenance, repairs &

overhaul (MRO) operations but also the insurance sector. In fact, the spiraling

growth in the aviation sector has given an upshot to the insurance segment.

As per an airline risk management survey - commissioned by international

magazine Airline Business and global airline insurance broker Aon - airlines are

spending no less than $8.36 bn a year on risk management, with around 70%, or

$5.86 bn, spent on insurance premiums. Aviation premiums are, on an average,

growing by 15.5% post-9/11, the survey reports. It further states that while theindustry's loss record has been respectable in the last four years, traffic and

passenger numbers have risen significantly, increasing the exposure to risk.

In India, a majority of the private players, including Bajaj Allianz, ICICI Lombard,

Reliance and the four public sector general insurance companies - Oriental, New

India Assurance, United India, National Insurance - offer aviation insurance in themarket.

Although there are no official estimates, industry players put a ballpark figure of

the Indian aviation insurance market at somewhere around Rs 400 cr to Rs 500 cr.

"With new aircraft being bought by new players entering the sky and the existing

one in expansion mode, this segment will only grow," says T A Ramalingam, head,underwriting, Bajaj Allianz.

Bajaj Allianz is one of the most active players in the market and a co-insurer with

Kingfisher Airlines, Go Air, Indigo Air and Air India among the scheduled airlines

and also insured aircraft owned by India companies such as Bajaj Auto consortium,


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Force Motors, Ranbaxy group, Shamanur Sugar group, Orient Flight school, Asia

Aviation, a part of the BILT group, Mundra Port and SEZ Ltd, an Adani group

company.

In India, this segment is highly reinsurance-driven. A majority of the players have

re-insured the value of risk covered with foreign companies. Take the case of Air

India where almost 90% of the risk is insured overseas through reinsurance

arrangements, while the remaining cover rests domestically.

According to Ernst & Young, a global consultancy firm, Indian skies would have

over 700 aircraft - from 235 currently - by 2012, an increase of almost 200%. The

numbers speak for the potential of this segment in the market, which is one of the

fastest growing in the world.

"Predictions for aircraft deliveries to meet the increasing demand for air travel,

particularly in Asia, mean that some 4,000 new airliners are on order, with this

region at 1,242 leading the way. Growth in purchasing power of passengers and

entry of low cost airlines has driven the upward movement of the airline industry

both in terms of equipment and staff and opening new opportunities for this niche

segment," believes Kartik Jain, head, marketing and e-channel, ICICI Lombard.

The company has insured more than 75 aircraft till date.

The shot in the arm for this industry has further come from the fact that aircraft are

becoming bigger in size with large seating capacity. This, in turn, increases the risk

for insurers, sometimes even catastrophic. With the emergence of bigger aircraft

such as Airbus A 380 and Boeing 777 Dream liners, the values of the aircraft as

well as the liability are slated to increase tremendously. The severity of each loss is


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also expected to go up proportionately. Currently, at least 10-15 re-insurers

participate in an airline insurance programme. However, with the introduction of

larger aircraft, the number of re-insurers participating would increase to 25.

The total premium figures for aviation insurance in India for 2006-07 stood at Rs

417.29 cr. Reliance, which does not hold a major share in the airline business till

now, is counting on its experience of handling major risks pertaining to energy/

off-shore risks/ package policies of large clients and strong network of

international underwriters. "National reinsurer, GIC, leads our reinsurance treaties.

As reinsurance support is essential in getting competitive quote in aviation

insurance, we aim to increase our share considerably in this financial year," says K

A Somasekharan, CEO, Reliance General Insurance. Typically, the premium

depends upon underwriting factors such as age of the aircraft, experiences of the

pilot flying the aircraft, make and model and use of the aircraft. It is generally 1%

to 3% of the aircraft value.

Future of Aviation Insurance


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As the industry enters into the millennium, the insurance industry must

look at several problems that also face the aviation industry. Survival for the small

FBOs is getting harder each day;the threat of financial devastation is real when it

comes to lawsuits. General aviation may be forced to change its way of doing

business and become more like the military and commercial airlines. One can only

hope that society will change their attitude towards the aviation industry and the

litigation that surrounds the industry. We all hope for a positive future for the

community.

Insurance and the Future of Aviation the aviation industry, as it is

known today, has grown into a set of definable industries. Modern aircraft range

from military to commercial airlines to the most diverse group, general aviation.

Aviation has come a long way the last 100 years. The industry is still developing.

With growth comes problems that must be solved before the industry can go to the

next level.


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As the industry enters into the millennium, the insurance industry must look at

several problems that face the aviation industry. Legal concerns, in many cases,

theyre influenced by our society. The court system plays a big part by their

decisions that are passed down. Its rare when an aviation case goes to court,

because insurance agencies know theyll lose when the jury hears the case. Its just

too easy to prove pilot negligence; most aviation accidents result from pilot error.

Also, when they do go to court, they very seldom mount a defense due to the

unreasonable verdicts, and ridiculous awards. These practices has forced aircraft

owners to stay away from new policies and let their insurance coverage lapse.

Aircraft owners pay three to five times the amount for adequate liability coverage

than their counter parts elsewhere in the world. Survival for the small business

operators is getting harder each day due to the General Aviation Revitalization Act

(GARA); the threat of financial devastation is real when it comes to lawsuits. The

(GARA) defects lawsuits from manufacturers to aviation service providers.

FBOs insurance rates are skyrocketing because of this, which

contributes to the cycle by causing higher repair cost. Many small business

operators really dont want to take the chance and cant afford the rising cost thats

associated with liability insurance. As of February 2000 at least three aviation

insurance under writers ceased writing coverage for the small business operators,

saying its a major risk. One of the main reasons is the cost to the underwriters.

Aviation insurance companies have paid out a dollar and quarter for every dollar

theyve taking in, for each of the last several years. No wonder so many are closing

down, merging, or getting out of the historically riskier aviation activities, General

aviation may be forced to change its way of doing business and become more like

the military and commercial airlines. Maintenance problems may be identified by

computers, and then repaired by the manufacturers. The industry is coping with the


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mounting cost associated with liability insurance. Remove and replace

maintenance is the attitude the industry must lean towards. The manufacturers

would set up new factory service centers and repair facilities for the general

aviation customers. This system wouldnt help the rising cost of insurance, but

maintenance and ground liabilities would rest on the shoulders of the manufacture.

The market itself is shrinking, weve had a generation of pilots from

WWII, Korea, and Vietnam that was introduced to aviation and trained at the

governments expense. Because of modern technology, well never again have the

numbers that we once had. The ageing fleet and pilots cant help the situation that

the industry is facing; the average aircraft age is 15 to 20 years, and the post Indianpilot is now 50 to 60 years of age. The underwriters are very worried about the age

of both the pilots and the aircraft.

During a telephone interview with Darrel Hyde of CS&A Insurance, he

stated; Aircraft hull and liability insurance for the senior pilot has become such a

concern that the insurance industry should develop a special task force to help deal

with this problem. The need to extend the insurable age of the senior pilots and tointroduce new blood in to the cockpits will only help matters with the attempt to

lower insurance cost for the industry.

Insurance cost for the industry remains high, with the shrinking fleet

of aircraft, means that the training cost will increase. The value of airplanes is

soaring; the high cost of new replacement aircraft for training isnt fea sible. The

FBOs are facing insurance thats inadequate and expensive, and its forcing

companies to reduce their operations or even cut them all together. Owners of

flight schools are having a hard time just staying in business. The shortage of

qualified instructors has slowed the flow of new pilots, which in turn is putting a

hardship on the industry. The future of the industry could hold a brighter out-look.


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One can only hope that society will change their attitude towards litigation, this

would hopefully drive down cost of liability coverage insurance.

The industry hopes that with the use of simulators at all levels of

training will increase the number of bettertrained pilots and hopefully lower

insurance cost at the same time. Insurance can be one of the most expensive

elements in the fix cost of owning an aircraft. To keep insurance cost under control

in this difficult environment, aircraft and aviation business owners are going to

have to make some changes in the way they purchase and think about insurance.

There are ways to re

Aviation Insurance in India 航空保险在印度

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